Employee Benefit Plans

12 Months Ended

Dec. 31, 2025

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

    Employees of the Company are eligible to participate in the Company's 401(k) plan immediately upon date of hire. Employees may elect to have a portion of their salary contributed to the 401(k) plan in accordance with Section 401(k) of the Internal Revenue Code of 1986 (the “Code”). The Company provides for a mandatory $1.00 match for each $1.00 contributed by employees of the Bank up to 6% of the employee’s eligible salary. The Company provides for a mandatory $1.00 match for each $1.00 contributed by employees of RML up to 3% of the employee’s eligible salary. The Bank or RML may increase the matching contribution at the discretion of the Board of Directors. The Company expensed $2.9 million, $2.1 million, and $2.0 million, in 2025, 2024, and 2023, respectively, for 401(k) contributions and included this expense in “Salaries and other personnel expense” in the Consolidated Statements of Income.

    The Bank has a Supplemental Executive Retirement Plan (“SERP”) for executive officers of the Bank whose retirement benefits under the 401(k) plan have been limited under provisions of the Code. While contributions to this plan were halted in 2025, the Bank still has liabilities related to the SERP. Contributions to this plan totaled zero, $397,000, and $350,000, in 2025, 2024, and 2023, respectively. These expenses are included in “Salaries and other personnel expense” in the Consolidated Statements of Income. At December 31, 2025 and 2024, the balance of the accrued liability for this plan was included in “Other liabilities” and totaled $2.6 million and $2.5 million, respectively. The Bank redirected employer contributions from the SERP in 2025 to the individual participant accounts under the Northrim non-qualified deferred compensation plan. Existing balances in the SERP will be paid out accordingly. Contributions in 2025 for this plan, which formerly would have been made to the SERP plan, were $256,000 in 2025 and are also included in “Salaries and other personnel expense” in the Consolidated Statements of Income.

    RML has a non-qualified deferred compensation plan (“DCP”), under which RML has agreed to make payment to certain key executives and loan officers, based on contributions made by RML to the plan. Contributions and earnings made to the participant accounts for the DCP are vested over ten years. The Company recorded expenses of $374,000, $380,000, and $333,000 in 2025, 2024, and 2023, respectively. RML's recorded obligation under the DCP amounted to $939,000 and $2.1 million at December 31, 2025 and 2024, respectively, and was included in “Other liabilities”.

    The Bank also has a non-qualified deferred compensation plan in which certain former executive officers participate. The Bank's net liability under this plan is dependent upon market gains and losses on assets held in the plan. The Bank recognized an increase in its liability of $59,000 in 2025, a increase in its liability of $24,000 in 2024, and a decrease in its liability of $10,000 in 2023. These changes are included in “Salaries and other personnel expense” in the Consolidated Statements of Income. At both December 31, 2025 and 2024, the balance of the accrued liability for this plan was included in “Other liabilities” and totaled $1.8 million.

    All employees of the Bank employed on the last day of the calendar year or retired during the year are eligible and will participate in the Profit Sharing Plan. The aggregate amount to be paid to employees under the Profit Sharing Plan is determined using Company-wide performance goals that are established by the Compensation Committee of the Board of Directors. If the performance goals are met for the year, profit sharing for the period is calculated based on a formula that is also approved by the Compensation Committee each year. The Compensation Committee has complete discretion to designate an employee as ineligible for profit sharing, or to adjust the amount of profit share payments by individual employee or in aggregate. Profit share expense was $6.3 million, $5.2 million, and $2.5 million for 2025, 2024, and 2023, respectively. 

At both December 31, 2025 and 2024, the Company had accrued $2.0 million, related to employee's paid time off benefit. The balance of the accrued liability for this plan was included in “Other liabilities”.

SCF employees are currently offered benefits under the Professional Employer Organization (“PEO”), TriNet. Under the PEO arrangement, SCF employees are eligible to participate in a safe harbor retirement plan that matches 100% up to 3% of compensation, and then anything over 3% compensation is matched at 50% up to 5% of eligible compensation. SCF employees are intended to align to Bank's benefits package in 2026, subject to the termination of the PEO arrangement.